March 08, 2019
Ellie Mae’s September Millennial Tracker Shows They Still Want to Buy Homes
Every Millennial Tracker report released by Ellie Mae in the past few months point to what appears to be a positive trend in the housing market: Millennials are buying houses, and seem to be relatively undeterred by rising mortgage rates.
Ellie Mae, a software company that processes 35 percent of mortgages in America by automating and streamlining the process of originating and funding new mortgages and that ensures compliance with the regulations found in the various markets, is uniquely positioned to gather this data.
Whereas market-players in the older generational sets have a relatively higher amount of activity in the refinance market, Millennials are much more engaged in the purchase loan market (to the tune of 89 percent in September 2018)—which makes sense given that this age group is finally finding itself economically poised for homeownership after a long delay. Indeed, the percentage of conventional loans increased seven percent year-over-year from September 2017 to September 2018, with such loans capturing 68 percent of the Millennial loan allotment this past year. Two percent of Millennial loans in September were VA loans, and 27 percent were FHA loans.
Even December’s tracker, which covered the results of October’s market, showed that as interest rates edged higher and the market tightened its belt in other ways, Millennials continued to purchase homes at a relatively strong rate. Purchase loans amounted to 88 percent of loans closed by this group during that time, four percent higher year-over-year than October 2017. Refinances did show signs of rising in number—up to 11 percent.
This indicates that the Millennial generation may be poised to drive the housing market going forward, so long as wages do not stagnate and the overall market remains solid in its fundamentals. This generation has, in many ways, been defined and circumscribed by the 2008 crisis and its social fallout, which has meant their slow entry into the housing market. That they are now entering the fray in such solid numbers indicates that they may be considered slow-starters, but that, once they get going, they will come on strong.
Here at Topouzis & Associates, P.C., we do everything we can to be absolutely sure our clients are conveying and purchasing title clear of judgments and defects. And we help our clients in Rhode Island, Massachusetts, and Florida put into place good policies of title insurance to make certain they don’t get surprised by any nasty lurking issues with a property—which is the last thing any Millennial buyer might want. Contact us if you’d like us to do this for you.